Unitech Energy Completes Special Warrant Conversion

Unitech Energy reported that to fund the drillout and completion of the Keg River test well and earn additional working interests, Unitech completed a non-brokered private placement in December, 2007 of 15,000,000 Special Warrants at a price of $0.09 per Special Warrant for gross proceeds of $1,350,000. The terms of the Special Warrants provided that they would be converted into a variable number of common shares dependent on a reserves and valuation of the test well.

The terms of the Special Warrants specifically provided that if the Valuation provided a value of the test well at less than 3 BCF, the total number of common shares issued (on a pro rata basis) upon conversion of the Special Warrants would be 3,218,389 common shares. Since there are no reserves attributable to the test well, the 15,000,000 Special Warrants will now be automatically converted into common shares on the basis of 0.2145594 common shares for each Special Warrant held.

Unitech will instruct its transfer agent and registrar to convert the Special Warrants and issue the applicable number of common shares based on the conversion factor outlined above. No action is required on the part of the Special Warrant holders as the shares will be "pushed out" by the transfer agent. The common shares issued upon conversion of the Special Warrants will continue to be subject to a hold period expiring four months from the date of issuance of the applicable Special Warrants.

Upon the conversion of the Special Warrants to common shares, Unitech will have approximately 27.4 million common shares issued and outstanding on a non-diluted basis and approximately 31.2 million common shares issued and outstanding on a fully-diluted basis.


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